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Table of Contents
 
Summary
Industry Structure and Dynamics
Introduction and Nomenclature
Environmental Issues and Regulations
Ozone-Depletion and the Montreal Protocol
Climate Change and Global Warming
Clean Development Mechanism (CDM)
The Clean Development Mechanism and Certified Emission Reduction Permits
How CERs Are Produced, Calculated, and Priced
Current CER Trading Market, Market Supply and Demand by Countries
United States
EPA Regulations
Reclamation and Reuse
Europe
Japan
Developing Countries
Manufacturing Processes
Supply and Demand by Region
North America
Salient Statistics
Producing Companies
United States
Canada
Mexico
Production
Consumption
Refrigeration and Air-Conditioning
Mobile air-conditioning
Stationary air-conditioning
Household refrigerators and freezers
Commercial and industrial refrigeration
Polymer Precursors
Fluoropolymers
Fluoroelastomers
Foam Blowing Agents
Aerosol Propellants
Solvent Cleaning
Other
Price
Trade
United States
Canada
Mexico
Central and South America
Salient Statistics
Producing Companies
Consumption
Trade
Europe
Salient Statistics
Producing Companies
Production
Consumption
Refrigeration and Air-Conditioning
Polymer Precursors
Fluoropolymes
Fluoroelastomers
Foam Blowing Agents
Flexible polyurethane foam
Rigid polyurethane foam
Polystyrene foam
Polyolefin foams
Phenolic foams
Aerosol Propellants
Solvent Cleaning and Other
Price
Trade
Imports
Exports
Japan
Salient Statistics
Producing Companies
Production
Consumption
Polymer Precursors
Refrigeration and Air-Conditioning
Foam Blowing Agents
Solvent Cleaning
Aerosol Propellants
Price
Trade
Imports
Exports
China
Salient Statistics
Producing Companies
Production
Consumption
Trade
Imports
Exports
Other Asia
Salient Statistics
Producing Companies
Consumption
   
  Fluorocarbons
   
  Ray Will and Hiroaki Mori
  Published June 2008
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  Abstract
   
 

The fully halogenated chlorofluorocarbons (CFCs) and the partially halogenated hydrochlorofluoro­car­bons (HCFCs) (as well as hydrobromofluorocarbons [HBFCs], the Halons, carbon tetrachloride, methyl chloroform and methyl bromide) are stratospheric ozone depleters. Depletion of the ozone layer is a criti­cal issue because that layer protects the earth from unacceptably high levels of ultraviolet radiation. High levels of ultraviolet radiation affect both human health and the environment through higher incidences of skin cancer, cataracts, immune system suppression, potentially reduced yields of certain crops, potential damage to aquatic plankton and, thereby, the global food chain, and increased formation of ground-level ozone and smog.

Fluorocarbon products that do not contain chlorine and/or bromine (i.e., fully fluorinated and hydrofluorinated [HFC] products) are not stratospheric ozone depleters and production of these products is not being eliminated by the Montreal Protocol. They are however, restricted by the U.S. Clean Air Act and must be recovered instead of released to the atmosphere. Similar national environmental laws implement the Montreal Protocol in the various nations that have ratified the agreement. The extent to which some HFC fluorocarbons, particularly HFC-134a, contribute to climatic change or global warming has become the subject of significant environmental concern, particularly in Europe, and raises questions about the continued use of these ODP-free CFC-replacement chemicals.

As a result of the Montreal Protocol and Kyoto Protocol and subsequent amendments and ratification by individual countries, there are current and proposed regulations limiting the production, consumption and trade of CFCs, HCFCs and HFCs. Over the past two decades, the global fluorocarbons market has under­gone a number of major transitions toward a greater use of non-ozone-depleting HFCs and non-global-warming, nonfluorocarbon alternatives in emissive applications.

The following pie chart shows world consumption of fluorocarbons in 2007:

Consumption of fluorocarbons in the largest market segment, refrigeration and air-conditioning, has been negatively impacted by the following:

  • Prevention of fluorocarbon escape from refrigeration and air-conditioning systems
  • Bans on fluorocarbon venting during system maintenance
  • Reuse (recycling) of fluorocarbons
  • Use of nonfluorocarbon alternatives in refrigeration such as ammonia and hydrocarbons (i.e., isobutane)

Overall, the segment has many alternatives for the now-banned CFCs and soon-to-be-banned HCFCs in both new equipment and for servicing existing equipment. Non-fluorocarbon-based products, such as hydrocarbons, have been introduced and are now the established standard in Europe and Japan for home refrigeration. The major alternative for CFC-12 in vehicle air-conditioning as well as home refrigeration in the United States, HFC-134a, grew strongly in the late 1990s, as the developed countries adopted this alternative to CFC-12. In 2003–2007, HFC-134a consumption in Japan declined, while in Europe and North America, consumption increased. In developing countries, consumption caused by the transition to HFC-134a from CFC-12 has generally lagged behind that of developed countries, except in China, where growth in the production of automobiles has caused strong HFC-134a consumption for mobile air-conditioning.

Over the next five years, North American consumption of fluorocarbons will increase at a moderate average annual rate while the European market is expected to decline slowly; Japanese consumption will grow slowly. China is the world’s fastest growing fluorocarbon market.

Compared with the United States, the European Union has been significantly more aggressive in its production reduction and scheduled reduction of HCFC production, and it is implementing restrictions on the use of HFCs in compliance with Kyoto Protocol goals to limit the emissions of global warming gases. The largest-volume fluorocarbons produced in Europe in 2007 were HCFC-22, HFC-134a, HCFC-141b, HCFC-142b and HFC-365mfc.

In 2007, the largest-volume fluorocarbon used as a refrigerant and coolant in Europe was HFC-134a, followed by HCFC-22, then blends based on HFC-143a, HFC-152a, HFC-125 and HFC-32. HFC-134a will be banned from automotive air conditioners in new vehicle models in 2011.

Despite the 1996 production ban in developed countries, a continuing availability of CFCs has dampened the demand for CFC alternatives; however, this market is approaching insignificance as air-conditioning and refrigeration equipment ages to obsolescence and the energy efficiency of new equipment makes replacement an attractive option for equipment using CFCs. In the United States, stockpiled and recycled CFCs have allowed the continued operation of older refrigeration and air-conditioning equipment.

Chinese production of fluorocarbons has more than doubled over the last five years. In 2007 China was the world’s largest producer of HCFC-22 and ranked second to the United States in total fluorocarbon production, having surpassed Europe and Japan. China has rapidly emerged as the world’s second-largest market for fluorocarbons after the United States. China is different from the other major fluorocarbon consumers—the United States, Europe and Japan—because it is classified as a developing country and as such, can rely on HCFCs longer than the developed countries, as allowed under the Montreal Protocol.

Consumption in China’s largest market segment, refrigeration and air-conditioning, is growing quickly. A major portion of China’s domestic refrigeration and air-conditioning equipment still uses HCFC-22, unlike the use of HFC-134a for the same purposes in the United States. Hydrocarbon refrigerants also account for a significant portion of China’s household refrigeration. As much as 85% of China’s HFC-134a consumption is used in the domestic automobile industry for mobile air-conditioning.

 
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